Bayer's Q2 sales rise 2.2%, core EPS down 16.7%

Bayer AG

04/08/2026 06:41

Overview
German life sciences group's Q2 sales rose 2.2% yr/yr on currency- and portfolio-adjusted basis
Core EPS fell 16.7% yr/yr, while net income improved to 219 mln euros
Crop Science division posted higher sales and substantial earnings growth; free cash flow negative due to settlement payments

Outlook
Bayer confirms currency-adjusted Group outlook for 2026, except net financial debt revised lower
Company now expects 2026 net financial debt at €29-30 bln, down from €32-33 bln
Bayer sees 2026 Group sales at €44.7-46.7 bln and core EPS at €4.20-4.70

Result Drivers
CROP SCIENCE GAINS - Higher volumes and prices for glyphosate-based herbicides and insecticides, plus efficiency-driven cost declines, fueled sales and earnings growth in Crop Science
PHARMACEUTICALS MIXED PERFORMANCE - Strong sales growth for Nubeqa and Kerendia offset by declines in Xarelto and Eylea due to patent expirations and increased marketing investments
CONSUMER HEALTH COST PRESSURE - Earnings declined due to higher cost of goods sold and unfavorable product mix, partly offset by cost and price management efforts

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Core EPS
 
EUR 0.95
 
Q2 Net Income
 
EUR 219 mln
 
Q2 Adjusted EBITDA
 
EUR 2.14 bln
 
Q2 EBIT
 
EUR 827 mln
 
Q2 Free Cash Flow
 
-EUR 371 mln
 
Q2 Net Debt
 
EUR 33.65 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Bayer AG is €55.00, about 16.7% above its August 3 closing price of €47.12
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Aug 4 - Germany's Evonik Q2 revenue up 11% on higher volumes and prices
Aug 3 - Germany's Fresenius Medical Q2 revenue beats; 2026 outlook reaffirmed
Aug 3 - Eli Lilly to offer early access to next-gen obesity drug to some patients 

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)